Purchase Options

Call Prosper Funding, Inc to discuss your financial profile and goals for your home purchase. You can also visit the website and choose the ‘apply now’ feature to input your information online.

Expect to provide details about your finances, employment, and goals.

Pre-Approval

Success with your pre-approval allows you to begin writing offers on homes and other property types.

    • Credit Check: Lenders must assess your credit score and history to determine creditworthiness. At Prosper Funding, Inc., if a client is not ready to purchase, we can easily show them steps to take to get ready. We are enthusiastic about everyone being able to purchase their home and are happy to offer some coaching.

    • Income Verification: Proof of income, assets, and identification. You will be asked to provide paystubs, tax returns, W2’s, a valid ID, bank statements, stock statements, retirement statements, etc.  These items are required to assess your ability to repay the loan. 

    • Debt-to-Income Ratio: Your existing debts coupled with the costs of the property is compared to your income. Different loans have different debt-to-income ratio parameters, thus working with true professionals is a plus. They know the many different lenders and rules sets.

    • Pre-Approval: The accredited loan agent evaluates your application and provides a pre-approval letter stating the amount you can borrow, based on the assessment.

Finding a Property:

    • House Hunting: Once pre-approved, you search for homes within your budget and preferences.

    • Making an Offer: When you find a suitable property, you make an offer to the seller. Your real estate agent will want the pre-approval letter and proof of funds and that can easily be attained from Prosper Funding, Inc.

Loan Submission to the Bank:

    • Formal Application: After your offer is accepted by a seller, your escrow period begins. This is typically a 21-30 day process. Your loan agent will  submit a formal loan application to a lender offering the best terms for the scenario.

    • Earnest Money Deposit: Typically 3% of the purchase price of the property is sent by you to an escrow firm. The money is held there and applied to your down payment.

    • Property Appraisal: The lender arranges for an appraisal to ensure the property's value is sufficient to cover the loan amount.

Loan Processing:

    • Underwriting: The lender reviews all aspects of your application, including the appraisal and supporting documents.

    • Conditional Approval: If everything meets their criteria, the lender provides a conditional approval.

Closing the Loan:

    • Final Approval: Once conditions are met, the lender gives final approval for the loan.

    • Closing Disclosure: You receive a Closing Disclosure outlining the final loan terms and closing costs. You will be asked to wire the remainder of the down payment and closing costs to escrow.

    • Signing: An appointment will be made with a notary to attain signatures for the final loan documents coming from the lender.

    • Funding Approval: The lender verifies all documents and funds are prepared for disbursement of the loan.

    • Transfer of Funds: The lender transfers the funds to the escrow firm and they distribute the monies accordingly to vendors and the seller.

Post-Closing:

    • Move-In: You can now move into your new home.

    • Loan Repayment: You begin making regular mortgage payments according to the loan terms. Typically the first loan payment is not due for an entire month after the closing date.

Throughout this process, it's essential to communicate regularly with your lender, real estate agent, escrow agent, and any other professionals involved to ensure a smooth transaction.

 

Types of Purchase Loans:

  • FHA – government backed – low money down

  • Conventional – backed by Fannie Mae and Freddie Mac

  • JUMBO – larger sized loans

  • Conforming – smaller sized mortgages

  • Private Money Loans – loans requiring 20-30% down or more, not following traditional guidelines

  • Non-QM Loans – loans not following traditional guidelines

  • VA Loans – loans for veterans

  • Reverse Mortgage Loans – loans for seniors that allow them to use equity for substation of a monthly mortgage payment

  • Teacher loans – loans designed to help teachers purchase

  • Doctor Loans – loans designed to help doctors purchase

  • State of CA Employee Loans – loans designed to help government workers purchase

  • Firemen Loans – loans designed to help fire personnel purchase

  • Police Loans – loans designed to help police officers purchase

  • Construction Loans – loans to help pay for the cost of construction

  • HomeReady – loans for low money down and lower income borrowers

  • Home Possible – loans for low money down and lower income borrowers

  • Dream All for California – CA loans designed to help first time home buyers with low to zero down

  • FHA 203k – government backed construction loans

  • DSCR Loans

  • Bank Statement Loans

  • Investor Loans

  • Profit and Loss Statement Loans

  • Freddie Mace HomeOne – low money down

  • Freddie Mac Borrow Smart – location of the property combined with lower income of borrower

  • Lines of Credit – used to compliment a first loan to offer less money down